Las Vegas Monorail amends plan to tweak unsecured creditor treatment

By Caroline Salls

Pittsburgh, June 17 - Las Vegas Monorail Co. filed an amended plan of reorganization and related disclosure statement on June 16 with the U.S. Bankruptcy Court for the District of Nevada to change the proposed treatment for general unsecured creditors.

The disclosure statement hearing is scheduled for June 20.

Treatment of creditors under the amended plan will include the following:

• Holders of priority claims will be paid in full in cash;

• Holders of other secured claims will be paid in full in cash or otherwise left unimpaired;

• Holders of general unsecured claims will receive the lesser of 100% of their claim or a share of $175,000. Under the previous plan, these creditors were slated to receive the lesser of 80% of their claims or a share of $175,000;

• Holders of first-tier bond secured claims will receive $15 million of 10% cash pay senior notes due June 30, 2019 and $19.5 million of 10% pay-in-kind capital expenditure notes due 2019;

• Holders of first-tier unsecured bond claims will receive $10 million of 8.315% pay-in-kind capital appreciation notes, which will mature on the earliest of a triggering event and June 30, 2055, and their first-tier bonds will be cancelled;

• Holders of second-tier bond claims and third-tier bond claims will receive no distribution;

• Director claims will be impaired; and

• Holders of subordinated claims will receive no distribution.

The company, a Las Vegas non-profit monorail operator, filed for bankruptcy on Jan. 13, 2010. The Chapter 11 case number is 10-10464.

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